Measures relating to property
6Reduction in higher CGT rate for residential property gains to 24%
1
In section 1H of TCGA 1992 (the main rates of CGT)—
a
after subsection (1) insert—
1A
Residential property gains (see Schedule 1B) accruing in a tax year to an individual are charged to capital gains tax at a rate of 18% or 24%.
b
in subsection (2), omit paragraph (a) together with the “or” at the end of the paragraph,
c
after subsection (4) insert—
4A
Residential property gains accruing in a tax year to the personal representatives of a deceased individual are charged to capital gains tax at a rate 24%.
d
in subsection (5), omit paragraph (a) together with the “or” at the end of the paragraph, and
e
in subsection (7), for “28%” substitute “24%”
.
2
In section 1I of that Act (income taxed at higher rates or gains exceeding unused basic rate band)—
a
in subsection (1)—
i
before paragraph (a) insert—
za
at the rate of 24% (if they are residential property gains),
ii
in that paragraph, omit “residential property gains or”,
b
in subsection (2), in the words after paragraph (b)—
i
after “is charged at the rate of” insert “24% (so far as comprising residential property gains), at the rate of”
, and
ii
omit “residential property gains or”,
c
in subsection (5)—
i
before paragraph (a) insert—
za
at the rate of 24% (if they are residential property gains),
ii
in that paragraph, omit “residential property gains or”, and
d
in subsection (9)—
i
before paragraph (a) insert—
za
at the rate of 24% (if they are residential property gains),
ii
in that paragraph, omit “residential property gains or”.
3
The amendments made by this section have effect in relation to disposals made on or after 6 April 2024.